Updated from 11:53 a.m. EDT

Delta Air Lines ( DAL ) said Monday that its loss widened in the second quarter, but results were complicated by massive noncash charges, first announced a week ago.

The carrier reported a net loss of $1.96 billion, or $15.79 a share, vs. a profit of $184 million, or $1.40 a share, a year ago.

Excluding charges, the company lost $312 million, or $2.55 a share, vs. a net loss of $237 million, or $1.95 a share, in the year-ago period.

Operating revenue rose to $3.96 billion from $3.49 billion a year ago.

Analysts were expecting a loss of $265.8 million, or $2.46 a share, on revenue of $3.82 billion.

In reaction, shares initially fell sharply on the news, but then shot higher. Recently, they were up 40 cents, or 7.3%, to $5.90.

"Delta must create a cost structure that corresponds to the revenue base our network can deliver," the company said in a statement. "Cost savings must be combined with a competitive employment cost structure, reduced debt and additional cost reductions in order to position Delta for long-term success."

Last week the struggling Atlanta-based carrier said it would record significant noncash charges totaling $1.65 billion for the quarter. The bulk of them, $1.53 billion worth, are related to deferred income taxes. Another $117 million is for a settlement related to the company's defined benefit pension plan for pilots because of higher-than-average retirements.

Delta is struggling to cut costs and is trying to renegotiate an existing contract with its pilots union. The company has warned that it can not rule out a Chapter 11 bankruptcy filing if it proves unable to implement radical cost-cutting measures. Delta and other major carriers such as Continental Airlines ( CAL ) have also been hurt by high fuel costs as crude oil prices hover around $40 a barrel. The carrier has also seen a spate of senior executives leave the company in recent months.

Delta is the first major legacy carrier to report earnings for the April-June period, which has been a surprisingly difficult one for the industry. Southwest Airlines ( LUV ) surprised analysts by missing earnings forecasts, even though its profit rose during the period. The industry has rushed to boost capacity, but carriers have slashed fares on the most competitive routes, eroding profits, ahead of the peak summer season.

Continental reports earnings Tuesday, while Northwest Airlines' ( NWAC ) results are due out Wednesday. Another low-cost carrier, JetBlue ( JBLU ), reports Thursday.

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